Clearway Energy (CWEN) Upgraded to Buy: Here's Why

Core Viewpoint - Clearway Energy (CWEN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - Clearway Energy's earnings estimates have shown a significant upward trend, with a 107.5% increase in the Zacks Consensus Estimate over the past three months [8]. Company Performance Indicators - Clearway Energy is projected to earn $1.18 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 57.3% [8]. - The upgrade to Zacks Rank 2 places Clearway Energy in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, while the next 15% receive a 'Buy' rating [9].